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Switch 2 Will Sell Fewer Systems Than Previously Thought Due To Tariffs, Analyst Says

But the Switch 2 could still be the fastest-selling home console in history.

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One research company has lowered its sales forecast for the Switch 2, due in part to "pricing" concerns surrounding the impact of tariffs. DFC Intelligence is downgraded its global Switch 2 sales forecast for 2025 from 17 million to 15 million units. Even at 15 million in 2025, the Switch 2 would be the "fastest-selling console system ever," DFC said.

The original Switch, along with the Wii and the PS4, took a year or more to reach 15 million in sales. DFC is predicting the Switch 2 will reach that mark from the June 5 launch to the end of 2025, or about 7 months.

DFC said its downgraded forecast is tied to "supply and pricing."

"With tariffs and uncertain pricing Nintendo may choose to scale back its manufacturing. If prices increase substantially due to tariffs, a significant portion of prospective buyers are likely to hold back on a purchase until prices come down," DFC said.

For what it's worth, Nintendo has not announced any official sales projections for the Switch 2. More insight is expected to come in May when Nintendo releases its next earnings briefing and talks to analysts and investors about the console and the company's overall outlook.

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DFC said it was "relieved" to see Nintendo announce a $450 price point for the Switch 2 due to fears that "economic conditions" would result in Nintendo pricing the console at $500 or more. At $450, the Switch represents a "solid value," DFC said. However, after Nintendo delayed Switch 2 preorders due to the impact of tariffs, there are fears that Nintendo might announce a higher price point.

Some experts believe the Switch 2 will sell extremely well out of the gate due to pent-up demand and because people who buy shiny new products right away are not historically known to be price-sensitive.

DFC said on a longer-term outlook, the upper limit for Switch 2 sales is "enormous."

"The Switch 2 continues an established system and the ability to act as a portable device taps into Nintendo's rich history of offering portable/console experiences," DFC said.

Nintendo peaked in terms of hardware sales in 2007-2009 with the Wii and DS combining to sell 40 million-50 million units annually. But DFC said the Switch 2 is capable of reaching an "even larger share" than the original Switch on a longer-term timeline.

The Switch 2 launches on June 5. Keep checking back with GameSpot for more.

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Boxhead777

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Analysts are wrong, it will sell gang busters.

Short term supply can be shifted to non-US countries in the first year. Marketing can focus on those markets.

There hasn't been a console in two generations that hasn't had supply issues in the first year... this will be the first were stock will meet demand. EU will be happy playing Mario Kart World.

NS2 will be the most wishlisted item this Christmas.

Otherwise most people can swallow the price of the new units.. it will however impact software sales down the road.

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FattiesGoneWild

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Tariffs won’t stop jack. Record breaking sell outs and will be out of stock for the rest of the year. It will be PS5 all over again.

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raggedyman

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Ah yes, the tariff… Is not like the internet was crying out loud that the console and games were (scummy) pricey a couple days before that happened

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mogan

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mogan  Moderator

@raggedyman: I think the prediction DFC Intelligence is making is based on what they think the new tariffs are likely to do to the announced price. Though, they're also saying that, even with the downgraded sales prediction, Switch 2 will still be the fastest selling console ever.

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bat725

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Ah, yes. Tariffs! Never mind Japan is friends with US and has recently committed to investing 4 trillion in US economy.

No, the tariffs will just be an excuse for companies to charge more. I’m sure $450 is a little cheaper (too cheap) than most analysts think they should be charging, considering stores couldn’t keep PS5 in stock for two years at 600. They will convince Nintendo to sell for min 500.

They need to sell the story of high tariffs, after all. Lol

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YumeriaYumi

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Blame the tariffs, it is easy to do it. If it was any other game company I would think this holds real water, however Nintendo has always been the most aggressive gaming company. That is why they never let their games get sales bigger than, what, 5 or 10 dollars? People let them get away with "murder". A game that is over 5 or even 10 years old is full price and never goes on sale. The system price is not a concern to me, it is the game prices. Because any other company, I could just wait for a while and find a sale for 50% off or something. Not Nintendo. I have already stopped buying their games and do not plan to give them any of my money ever again.

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Asultana121x

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@YumeriaYumi: It basically comes down to what you can afford and/or what you're willing to spend. For me, I buy electronics all the time as far back as the mid 90's so the price doesn't mean much to me cause I'll buy it or buy it soon enough anyhow.

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